A firm in a competitive input market can
A. hire additional workers only after a long search process.
B. hire workers at the going wage.
C. hire additional workers only by raising wages.
D. hire additional workers at lower wages because those who are still unemployed are anxious to work.
Answer: B
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Marginal cost
a. Is the additional cost incurred by producing and selling one more unit b. Is the total cost incurred by producing and selling one more unit c. Is the additional fixed cost incurred by producing and selling one more unit d. None of the above
Unemployment that has an entirely macroeconomic cause is called
a. frictional unemployment b. seasonal unemployment c. structural unemployment d. cyclical unemployment e. short-term unemployment
People who buy newly issued stock in a corporation such as Crate and Barrel provide
a. debt finance and so become part owners of Crate and Barrel. b. debt finance and so become creditors of Crate and Barrel. c. equity finance and so become part owners of Crate and Barrel. d. equity finance and so become creditors of Crate and Barrel.
This monopolistic competitor is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run breaking even.